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Hinduja flagship firm Ashok Leyland on Monday said it has inked a pact with its long-standing Japanese partner Hino to jointly develop BS-VI compliant engines.
The companies have entered into a mutual cooperation agreement (MCA) where Ashok Leyland will utilise Hino's engine technology for Euro-VI development and will support Hinos engine parts' purchasing in India for global operation, the Chennai-based firm said in a statement.
Hino and Ashok Leyland have had a cooperative agreement for engine production in India since 1986.
By the latest MCA, both companies will leverage each other's strengths in diesel engines to enhance competitiveness.
Hino Motors President & CEO Yoshio Shimo said the cooperation with Ashok Leyland takes advantage of the strengths that the two companies have cultivated.
"Hino will enhance its global competitiveness by utilising Ashok Leyland's parts procurement capabilities in India," he added.
India in 2015 decided to leapfrog to Euro-VI emission norm compliant petrol and diesel from April 2020, from the Euro-IV grade at present.